As Carney prepares to engage with Trump, fate of CUSMA hangs in the balance

Mark Carney is expected to meet in person with U.S. President Donald Trump at the White House on Tuesday .

Carney has said that Trump ’s trade transgressions may have “called into question the validity of (CUSMA),” raising the prospect that he might be considering starting any negotiation with the Americans from scratch.

Whether CUSMA can be saved will have wide-ranging consequences for the Canadian economy.

Canada and Mexico were spared from the sweeping reciprocal tariffs and remain the only two U.S. trade partners that have access to a full exemption, through CUSMA .

Some experts believe there is a window for Canada to renegotiate the agreement.

Trade experts say a renegotiation will require Canada to “grow up” and put real issues on the table.

Canada has already followed the U.S. lead in protecting the North American auto industry by imposing 100 per cent tariffs on Chinese -made electric vehicles.

Canada has many things that are important to the Americans , including energy, water, critical minerals, agriculture commodities and expertise developed through an integrated automotive industry.

Canada will have to remain focused on diversifying its trade elsewhere.